Phillips Curve or wage curve? : evidence from West Germany: 1980-2004
"This paper reconsiders the West German wage curve using the employment statistics of the Federal Employment Services of Germany (Bundesanstalt für Arbeit) over the period 1980-2004. This updates the earlier study by Baltagi and Blien (1998) by 15 years for a more disaggregated 326 regions of West Germany. It is based on a random sample of 417,426 individuals drawn from the population of employees whose establishments are required to report to the social insurance system. We find that the wage equation is highly autoregressive but far from unit root. This means that this wage equation is not a pure Phillips curve, nor a static wage curve, and one should account for wage dynamics. This in turn leads to a smaller but significant unemployment elasticity of -0.02 up to -0.03 rather than the -0.07 reported in the static wage curve results reported by Baltagi and Blien (1998)." (Author's abstract, IAB-Doku) ((en))
|Date of creation:||02 Apr 2007|
|Date of revision:|
|Contact details of provider:|| Postal: Regensburger Str. 104, D-90327 Nürnberg|
Web page: http://www.iab.de/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Víctor M. Montuenga-Gómez & José M. Ramos-Parreño, 2005. "Reconciling the Wage Curve and the Phillips Curve," Journal of Economic Surveys, Wiley Blackwell, vol. 19(5), pages 735-765, December.
- Markus Pannenberg & Johannes Schwarze, 2000. "Wage Dynamics and Unemployment in Germany: Evidence from Regional Panel Data," LABOUR, CEIS, vol. 14(4), pages 645-655, December.
- Layard, Richard & Nickell, Stephen & Jackman, Richard, 1991.
"Unemployment: Macroeconomic Performance and the Labour Market,"
Oxford University Press, number 9780198284345.
- Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780199279173.
- Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, vol. 49(6), pages 1417-26, November.
- Peter Nijkamp & Jacques Poot, 2002.
"The Last Word on the Wage Curve?,"
Tinbergen Institute Discussion Papers
02-029/3, Tinbergen Institute, revised 13 Mar 2003.
When requesting a correction, please mention this item's handle: RePEc:iab:iabdpa:200714. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (IAB, Geschäftsbereich Dokumentation und Bibliothek)
If references are entirely missing, you can add them using this form.